Regarding the sale of financial products called single-premium insurance denominated in foreign currencies, 60% of customers cancel their contracts within a short period of four years after purchase, and there are also many cases in which customers who cancel their contracts receive commissions by selling similar products again. The Financial Services Agency asked financial institutions to make improvements.
Sales of foreign currency-denominated single-premium insurance, in which insurance premiums received from customers are invested in foreign currencies such as dollars, are increasing due to interest rate hikes in the United States, and the Financial Services Agency has targeted 27 banks and insurance companies that handle this product. We investigated the sales and management situation.
As a result, approximately 60% of customers canceled their policies within a short period of four years after purchase, mainly for products that automatically lock in profits without waiting for the maturity date when a set target amount is reached, and transition to yen-denominated insurance. That is to say.
Furthermore, there were many cases in which the company received commissions by selling similar products to customers who had canceled their contracts.
The Financial Services Agency has harshly criticized financial institutions for failing to understand the needs of customers who invest assets such as pensions, and has called on financial institutions to improve their efforts, such as by telling customers that they can raise their target amounts free of charge and offering consultation on how to respond. I did.
In addition, although the amount received with this product increases or decreases depending on exchange rate fluctuations, there were complaints that ``I have never heard of losing the principal.''
An investigation by the Financial Services Agency also confirmed sales to customers who lacked investment experience, so they are requesting thorough explanations based on risks and post-sales follow-up.